In some cases, Allianz told clients that they would get a 10 percent bonus if they transferred their current annuity over to Allianz. Most annuities charge heavy fees for withdrawing early, so people who switched from one plan to another were relying on the bonus just to cover the cost of switching. The annuities involved include Master Dex 10 Annuity, 10% Bonus PowerDex Elite Annuity, and the Bonus Dex Elite Annuity.
Annuities Q&A
- What's an annuity? It's a special kind of investment offered by life insurance companies that promises to pay out a regular amount of money after you pay in for a certain amount of time.
- Who else is offering "bonuses annuities"? Pioneer Investments, American Skandia, Ing, Ohio National, Extra-GE, Manulife Financial, AXA Equitable, Pacific Life, The Hartford.
- Are there charges for annuities? Yes - sometimes a lot of them. Make sure you have all costs explained to you, and don't pay for things you don't need.
- How do I know who to trust? The California Department of Insurance tells consumers considering an annuity - or any kind of insurance - to check the company's ratings: "Five major insurance rating companies grade insurers on their financial health and ability to pay claims. These companies are:
- A. M. Best
- Standard and Poor's
- Moody's Investor Service
- Duff & Phelps, and
- Weiss Research"
- A. M. Best
- What if I think my insurance company is over-charging me? The fine print can be tricky sometimes. If there's a chance you've been cheated, it may be time to seek legal advice.
READER COMMENTS
Gerry Grabinski
on
My wife and I purchased a Allianz 365i Fixed Annuity. We invested $400,000. Our life savings. Their rep told us that since we were going with this specific annuity that we would receive a bonus of $24,000.
After the 1st year (6/2/2015) our investment return was 0.25%. Allianz and their rep said we made 6% due to the bonus. However, we were later told that the $24,000 would be doled out at 10% a year or $2,400.
We tried to get out of the annuity claiming false representation and their attorney's answer was that it was all spelled out in the contract, which we signed. Obviously, not being in the annuity business my wife and I trusted their rep or we would never have agreed to buy the annuity. Shame on us! So much for TRUST.
I trust there is no Class Action lawsuit that we could become a part of???
Brian
on